The last time the FHA rate was cut (two years ago, 50 basis points) refinance applications tripled and purchase applications rose as well. When the Obama administration announced the rate cut, which was set to take effect in late January, FHA mortgage applications increased immediately. Lenders are reporting that many of those applications have been withdrawn since the Trump administration cancelled the discount.
CNBC has posted the following information online.
Written and Published by: VanEd